Lesson 8: Financial Deregulation and the 2008 Housing Crisis

0
September 13, 2016 at 9:44 pm  •  Posted in f16-econ491 by  •  0 Comments

Wed, Sep 14

Review:

  • Monetary Policy

Presentation:

  • Deregulation of the Financial System
    • Reaganomics
      • Unregulated capitalism
      • Trickle-down economics
        • Help the rich
        • The rich will invest more
        • New industries and jobs will be created
        • Rising tide lifts all boats
    • 1999 Repeal of Glass-Steagall
      • Gramm-Leach-Bliley Act
      • Republican Congress
      • Democratic White House
      • Removed “firewall” between commercial banks and investment banks
    • Derivatives Market
    • 2004 Securities and Exchange Commission (SEC)
      • In reply to global investment banks asking for more freedom
      • Agreed to loosen capital requirements
      • Allows fewer reserves and more debt
      • Voluntary regulation and self-reporting
    • Short History of Financial Deregulation in the US
  • Money for Nothing: Inside the Federal Reserve (begin at 0:29, end at 1:02)

Assignment:

  • Select an “Investment” property to prepare for Exam 1 Take Home assignment
  • More on Exam 1 next week

 

Leave a Reply